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Now Martha Coakley is investigating S&P

Boston housing

Boston housing

After news recently broke that the feds were maybe going after Standard & Poors for their apparent (cough, cough) subpar ratings of subprime-mortgage loans before the housing market crash, Massachusetts Attorney General Martha Coakley says that, yeah, I’m investigating them too.

It’s only six years after the crash and nearly a decade after the alleged bogus ratings were issued. But, hey, better late than never.

2 Responses to Now Martha Coakley is investigating S&P

  • What about Moody’s?

    From Bloomberg:

    Sept. 25 (Bloomberg) — In August 2004, Moody’s Corp. unveiled a new credit-rating model that Wall Street banks used to sow the seeds of their own demise. The formula allowed securities firms to sell more top-rated, subprime mortgage-backed bonds than ever before.

    A week later, Standard & Poor’s moved to revise its own methods. An S&P executive urged colleagues to adjust rating requirements for securities backed by commercial properties because of the “threat of losing deals.”

  • Rich, Could the exclusion of Moody’s have anything to do with the fact that Warren Buffett, a DC favorite who thinks he and other rich people are paying too little in taxes, is a major stakeholder in Moody’s?